An increase in appraisal costs in a quality improvement program would usually have the following initial effects on internal and external failure costs:
A) Choice A
B) Choice B
C) Choice C
D) Choice D

Question

An increase in appraisal costs in a quality improvement program would usually have the following initial effects on internal and external failure costs: 
A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D

Quizplus · Accepted Answer

An increase in appraisal costs would lead to early detection and prevention of defects, leading to a decrease in internal failure costs. However, as the costs of improving quality increase, there may be an increase in external failure costs due to higher investment in ensuring that customers are satisfied with the quality of the product or service. This scenario is known as the Cost of Quality Curve. Therefore, an increase in appraisal costs would initially lead to a decrease in internal failure costs and potentially an increase in external failure costs. Choice B appropriately reflects this scenario.

An Increase in Appraisal Costs in a Quality Improvement Program